Merck & Company, Inc. · NYSE:MRK
Merck & — Shareholder Meeting (May 2018)
30 slides from Merck &'s shareholder meeting presentation, May 22, 2018
Slide 1: Annual Shareholders Meeting
ANNUAL SHAREHOLDERS MEETING BRIDGEWATER MARRIOTT
Slide 2: Forward-Looking Statement of Merck & Co., Inc.
Forward-Looking Statement of Merck & Co., Inc., Kenilworth, NJ, USA This presentation of Merck & Co., Inc., Kenilworth, N.J., USA (the “company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These
Slide 3: Ken Frazier, Chairman and CEO
KEN FRAZIER, CHAIRMAN AND CEO
Slide 4: KEYTRUDA Offering New Hope for Patients with Lung Cancer
KEYTRUDA Offering New Hope for Patients with Lung Cancer Merck's Lung Cancer Triumph “The totality of the clinical benefit seen in 189 sets a very high competitive bar in 1L NSCLC” Adding Merck's Lung Cancer Drug Trial Keytruda To Chemo Data: Keytruda Tops Halves Death Risk Opdivo Again For Lung Can
Slide 5: Our Mission and Vision
OUR MISSION TO DISCOVER, DEVELOP AND PROVIDE INNOVATIVE PRODUCTS AND SERVICES THAT HEADQUARTERS Kenilworth, NJ, U.S.A. SAVE AND IMPROVE LIVES AROUND THE WORLD operating in more than 140 countries OUR VISION WE ARE COMMITTED TO BEING THE PREMIER, RESEARCH-INTENSIVE EMPLOYEES BIOPHARMACEUTICAL COMPANY
Slide 6: For more than a century, Merck has been inventing
Merck for Mothers FOR MORE THAN A CENTURY, established to reduce maternal deaths worldwide MERCK HAS BEEN INVENTING First chickenpox TO SOLVE SOME OF THE GREATEST HEALTH vaccine CHALLENGES AROUND THE WORLD FDA approves Merck vaccines for HPV cancers, shingles First synthesis First long-term CRIXIVAN
Slide 7: Companies that created the most value from 1926 to 2016
THE 50 COMPANIES THAT CREATED THE MOST VALUE FROM 1926 TO 2016 Merck is among the top companies which have created the most value over the last century 38% 5% Circles are sized by the company’s compound annualized stock return Source: The New York Times, September 22, 2017 (https://www.nytimes.com/2
Slide 8: Investing in Tomorrow's Science
South San Francisco, CA INVESTING IN TOMORROW’S SCIENCE London, England Cambridge, Massachusetts 8
Slide 9: Sales & Earnings FY2017
FY2017 Highlights: SALES & EARNINGS P&L (Non-GAAP) FY Ex-Exchange 2017 % vs. Prior NON-GAAP Sales $40.1B 1% EPS: $3.98 PGM $30.7B 2% FY2017 NON-GAAP PGM% 76.4% Operating Expense $17.1B 4% M&A Expense $9.8B 2% R&D Expense $7.3B 7% GAAP Net Income $10.9B 4% EPS: $0.87 Non-GAAP EPS $3.98 5% FY2017 GAAP
Slide 10: 1Q18 Key Highlights
1Q18 Key Highlights MERCK PHARMACEUTICAL SALES ANIMAL HEALTH SALES 1Q18 $8.9B $1.1B WORLDWIDE SALES +9% GROWTH +13% GROWTH $10.0B +4% EX-EXCHANGE +7% EX-EXCHANGE +6% GROWTH +3% EX-EXCHANGE KEY DRIVERS KEY DRIVERS Continued growth from KEYTRUDA and Continued strength in Ruminants and GARDASIL / GARDA
Slide 11: Sales & Earnings 1Q 2018
1Q 2018 Highlights: SALES & EARNINGS P&L (Non-GAAP) 1Q Ex-Exchange 2018 % vs. Prior NON-GAAP Sales $10.0B 3% EPS: $1.05 PGM $7.6B 2% PGM% 75.7% Operating Expense $4.3B -2% M&A Expense $2.5B -1% R&D Expense $1.8B -3% GAAP Net Income $2.8B 16% EPS: $0.27 Non-GAAP EPS $1.05 18%
Slide 12: Our Pillars of Growth Drive Long-Term Value
OUR PILLARS OF GROWTH DRIVE LONG-TERM VALUE ONCOLOGY VACCINES HOSPITAL & ANIMAL SPECIALTY HEALTH FOUNDATION OF DIVERSIFIED BRANDS
Slide 13: Oncology
ONCOLOGY We are a leader in immuno-oncology. KEYTRUDA is approved to treat first-line lung cancer and demonstrated improvement in overall survival “Right then where I was done with Keytruda, they said you’re cancer free. 86 20+ I just grabbed my doctor >700 trials and hugged her.” approved +25 tumor
Slide 14: Vaccines
VACCINES Our purpose is to protect current Merck has a rich legacy in vaccines, which are and future generations from responsible for some of the largest advances in public preventable infectious diseases health
Slide 15: Over 100 Years of Developing Vaccines
OVER 100 YEARS OF DEVELOPING VACCINES* 1990 1963 1971 1981 MSD licenses its first measles M-M-R® trivalent vaccine First plasma-derived hepatitis vaccine in the US introduced B vaccine licensed, 1995 2006 Heptavax-B (Hepatitis B MSD’s Dr. Hilleman isolates the 1977 Vaccine) 2014 mumps virus used to
Slide 16: Hospital & Specialty Care
HOSPITAL & SPECIALTY CARE Pipeline projects include areas where we are: Building on our legacy in HIV Continuing our commitment to address the challenges in neuroscience Remain committed to finding new We are uniquely equipped antibiotics to address large, intractable health issues that affect the w
Slide 17: Animal Health
ANIMAL HEALTH We work to discover, develop and deliver ANIMAL DISEASE REDUCES GLOBAL novel animal health products and solutions FOOD PRODUCTION BY that improve the health of animals, ensure sustainable food supplies, protect public 20% health and help people and pets enjoy BY 2050 THERE WILL their l
Slide 18: Animal Health Represents an Important Pillar of Growth
Animal Health Represents an Important Pillar of Growth +7%* vs. prior year – growth across: • Companion Animals – a broad- based portfolio • Livestock – added impact from Vilsan and Vallée acquisitions * Ex-exchange
Slide 19: We try never to forget that medicine is for the people
We try never to forget that medicine is for the people. It is not for the profits. The profits follow, and if we have remembered that, they have never failed to appear. — George W. Merck
Slide 20: Research and Development Highlights
RESEARCH AND DEVELOPMENT HIGHLIGHTS ANNUAL SHAREHOLDERS MEETING MAY 22, 2018 ROGER M. PERLMUTTER
Slide 21: Merck Oncology
MERCK ONCOLOGY Establish KEYTRUDA as A LEADER IN foundational treatment in monotherapy and in DELIVERING combination across multiple Identify BREAKTHROUGH tumor types APPROACHES THAT EXTEND AND Explore combinations and Identify patients most likely to IMPROVE THE other novel agents to broaden our po
Slide 22: Advancing Research to Improve Outcomes for Cancer Patients
Merck is Advancing Research to Improve Outcomes for Cancer Patients Assets under collaboration with our partners ~ 60 Approximate LEADERS IN DELIVERING ~200K BREAKTHROUGH Clinical trials number of patients treated worldwide 700+ INNOVATIONS THAT EXTEND AND IMPROVES studying over with KEYTRUDA 30 tum
Slide 23: KEYTRUDA
KEYTRUDA DEMONSTRATED ANTI-TUMOR ACTIVITY IN MORE THAN 25 CANCER TYPES approved - - - under review 1. Daud A et al. ASCO 2015; 2. Garon EB et al. ESMO 2014; 3. Seiwert T et al. ASCO 2015; 4. Plimack E et al. ASCO 2015; 5. Nanda R et al. SABCS 2014; 6. Bang YJ et al. ASCO 2015 ; 7. Moskowitz C et al.
Slide 24: KEYTRUDA Reduced the Risk of Recurrence as Adjuvant Treatment (KEYNOTE-054)
KEYTRUDA REDUCED THE RISK OF RECURRENCE WHEN ADMINISTERED AS ADJUVANT TREATMENT FOR PATIENTS WITH MELANOMA (KEYNOTE-054) DATA DEMONSTRATED PROLONGED RECURRENCE FREE SURVIVAL (RFS) BENEFIT
Slide 25: KEYNOTE-189: KEYTRUDA Plus Chemotherapy for Non-Squamous NSCLC
KEYNOTE-189: KEYTRUDA PLUS CHEMOTHERAPY FOR NON- KEYTRUDA SQUAMOUS, NON-SMALL CELL LUNG CANCER REDUCED THE 100 Pembro/Pem/Plat Events 31.0% HR (95% CI) 0.49 P <0.00001 RISK OF DEATH BY HALF (0.38-0.64) Placebo/Pem/Plat 52.4% 90 80 COMPARED TO CHEMOTHERAPY 70 60 ALONE OS, % 50 40 30 20 10 0 0 3 6 9 1
Slide 26: Expanding Our Oncology Portfolio Through Global Strategic Collaborations
EXPANDING OUR ONCOLOGY PORTFOLIO THROUGH GLOBAL STRATEGIC COLLABORATIONS LEADERS IN DELIVERING BREAKTHROUGH INNOVATIONS THAT EXTEND AND IMPROVES • THE LIVES Best-in-class PARP inhibitorOF and first PEOPLE PARP in breast cancer WITH CANCER • Significant long-term opportunity across multiple tumors an
Slide 27: Merck's Oncology Pipeline: 20+ New Molecules
MERCK’S ONCOLOGY PIPELINE: 20+ NEW MOLECULES DESIGNED TO IMPROVE CANCER THERAPY STING Cavatak® Immune Agonists RIG-I Other Agonists GITR Oncolytic Viruses IL-10 IDO+TDO, TDO LAG-3 CTLA-4 Nab Negative Immune TIGIT Multi-Specific Nabs Regulators IDO CXCR2 Preclinical Programs CTLA-4 Clinical Programs
Slide 28: Research and Development Highlights
RESEARCH AND DEVELOPMENT HIGHLIGHTS ANNUAL SHAREHOLDERS MEETING MAY 22, 2018 ROGER M. PERLMUTTER
Slide 29: Annual Shareholders Meeting
ANNUAL SHAREHOLDERS MEETING KEN FRAZIER, CHAIRMAN AND CEO
Slide 30: 1-800-CALLMRK
For voting results, call 1-800-CALLMRK (1-800-225-5675) Or visit www.merck.com